ICICI Demat Account for Minors

Looking ahead to open a Demat account for minors? If yes, then here we are with the complete details of the ICICI Demat Account for Minors. 

But stop! If you had made a decision, but do you want to have a quick glance at the background of the firm? If yes, then let’s get started!

ICICI Securities is a bank-based stockbroker offering valuable brokerage services. Registered with NSE, BSE it offers trading benefits in equity, mutual funds, etc. However, one cannot trade in commodities with ICICI Direct. 

After understanding the background of ICICI, now, let’s discuss the minor Demat account.

The Demat account can be created by the guardian on behalf of the minor. In this case, the guardian will operate the account until the minor became significant to handle the Demat account.

The guardian is to be a father, or in his absence, it should be a mother, but in the absence of both, the court will choose the guardian, but the minor can never be a joint holder in the Demat account.

The trading account could be created in the name of the minor mostly for the ultimate goal of trade securities held by the minor by the form of investment in IPO, inheritance, corporate action, off-market transfer through the following reason:

• Donation/Gift
• Transfer among members of the family
• Execution of the Government/Regulatory Guidelines or Orders

After learning about the central concept behind opening the minor Demat account, let’s shift to the minor Demat account with ICICI.

Want to know about the documents required for minor Demat account, charges, procedure, closing an account along with advantages and disadvantages of the same? Then, let’s delve into the following segments to know more about them in detail.

Let’s get started! 

ICICI 3 in 1 Account 

Whether you are opening a Demat account for minor or major, ICICI Direct comes up with the facility to 3 in 1 account. It means, you can have a combination of all the three accounts; Demat, trading, and bank account together.

This avoids the hassle to process the opening of these accounts together thus saves your time and energy.

Further, you can save money as you don’t need to pay account opening charges separately to activate the account and reap its advantages.

With 3 in 1 account, you can have many more benefits like:

• Free access to one of the best trading apps in India.
• Research tips that help newbie investors like you to invest smartly and carefully
• Easy transaction of shares to your Demat account.
• Live tracking of shares you want to invest in.
• Regular updates on the market movements
• Free news updates.

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How to Open ICICI Demat Account?

If you want to open a minor account and want to know about how to open the minor Demat account ICICI, refer to the segment to get a piece of detailed information.

The minor Demat account opening process is simple and hassle-free that can be opened in the three significant ways as listed below:

1. You can download the account opening form for minors from the website. Fill in the form with the credentials and pieces of information asked. Then, submit it with the required copies of documents to the ICICI branch, which provides the Demat services.
2. Directly visit the branch that offers the Demat account services.
3. You can open the minor Demat account in ICICI online.

Let’s understand the online procedure in detail so in case you want to open an account online:

• The very first step is to visit the ICICI website and login into it.
• Now, search for the ‘Open an account’ tab and click on it.
• Complete the essential details like email Id, name, city, mobile number, and so on and click on ‘Submit.’
• The OTP will be sent to verify the email Id and mobile number.
• The next step is to fill in the account opening form with the necessary pieces of information like PAN card number of the minor, address, name, etc.
• Complete the form and then submit it.
• As the account is for the minor, it is important to complete the KYC for the minor and the guardian.
• Here, the process is complete, and you will get a call from the ICICI for the verification of opening the minor Demat account.
• After the call, within 3-4 business days, the credentials details and information will be sent to you in the mail.

The online minor account opening process is simple and does not take much time to open an account with the ICICI.

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Documents Required for the ICICI Demat Account for Minors

To open a minor Demat account, it is required to submit a few documents. The following list provides you with more information about the documents needed for the ICICI minor Demat account:

• PAN Card number of the minor
• Address Proof
• Age Proof that could be a birth certificate
• Photographs of the minors and guardians
• Identity Proof

Apart from this, the documents that will be required are of the guardian which are as follows:

• The photocopy of the Aadhar Card
• The photocopy of the PAN Card
• The photographs
• Mobile number as well as the email ID
• The KRA will be required but in case the guardian does not have KRA and IPV documents in that situation submit the first page of the KYC page.

After this, if you want to know the detailed information about the document (which papers can be submitted under a particular proof), consider the following table.

 

In the opening procedure of the standard Demat account, only the document of the client is required. But to open the minor Demat account, the documents of the minor, as well as the guardian, are to be provided.

After submitting the documents, you will get the verification call from the appointed executive, and after that, the minor account will be created in the ICICI.

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ICICI Demat Account for Minors Charges

The minor Demat account ICICI charges are as same as the standard Demat account. The two significant charges that are imposed to open a minor Demat account are as:

1. ICICI Direct Account Opening Charges
2. Account Maintenance Charges (AMC)

 

Note: The account opening and AMC of both, basic Demat account and minor Demat account remain the same. It does not vary in any stockbroking firm or any bank-based stockbrokers. 

How to Use Demat Account ICICI for Minors?

The minor Demat account can only be used to trade in the equity segment. To make efficient use of the Demat account, download the ICICI Direct mobile app and log in using the login credentials.

Now make efficient use of the ICICI account to trade in the equity segment and to apply for IPO.

Also, you can use the account to reap the benefit of REFER and EARN program of ICICI Direct.

To do trading using the minor demat account, simply select the fundamentally strong stock, click on and fill in the following details:

• Quantity of stocks
• Price of stock
• Click on ‘Confirm’.

There are various limitations of a minor Demat account, hence it is good to know different parameters before you open an account with the stockbroker.

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In case of any query or doubt, you can reach out to us and we will assist you in opening a Demat account online for FREE!

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Is ICICI Demat Account Good?

Well, the process and other related details for the minor Demat account are almost similar to other brokers in the industry. But being one of the leading stockbrokers in the industry, it comes up with various additional benefits and services for its customers.

So, if you are still wondering of whether or not to open a Demat account with ICICI Direct, then here are some of the Pros and Cons that help you in making your decision.

Pros of ICICI Demat Account for Minors

The minor Demat account in the ICICI can help the holder in many ways. Consider the following pros of minor Demat account ICICI to understand the concept.

1. Investment Gain

The investment gain refers to the increase in the value of the investment and the asset that concludes the price appreciation of the investment or the asset.

When the sale price of the investment or asset surpasses the purchase price, at that point, the gain arises.

Including but not limited to the bond, stocks, real estate are the types of capital assets that result in the investment gains.

2. Dividend Income

The dividend is the amount that is distributed among the shareholders of the firm. It is used by the companies as a model for distributing profits to the shareholders.

Investing in such stocks can give the minor the chance to make a good income source in the form of dividends. 

3. Better Alternative to all Children Plan

The minor Demat account is the best alternative for all children’s plans like that of LICs and so on.

The guardian can transfer the shares or securities in the Demat account of the minor for their future use.

There are the pros of the minor Demat account ICICI, which can allow people to compare and take decisions based on them.

4. ICICI Demat Account Refer and Earn

Other than this, here you can reap the benefit of the ICICI Direct referral program, under which you can refer the minor or your friend for opening a Demat account and earn additional money.

ICICI referral program offers you the benefit of making a profit of up to ₹750 for each referral. So why to wait more, start referring the minors and increase the benefits.

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Cons of ICICI Demat Account for Minors

Every coin has two sides, so does the minor Demat account. After grabbing the details over the pros of the minor Demat account, now, we will discuss the cons of the minor Demat account ICICI.

The following mentioned are the cons of the minor Demat account:

1. Tech Savvy

It is very difficult for people to operate a computer or mobile because they might not be actively technologically advanced.

The knowledge about the apps and working with the computer is required to open the minor Demat account as it provides the information online.

2. Use after Becoming Major from Minor

The stocks or securities can be used by the minor when he becomes the major and fulfills the requirements to operate the Demat account.

At that point, the KYC is to be completed again, and shifting of the minor Demat account to the standard Demat account also requires few steps.

3. No Trading Account

The minor Demat account does not allow to open a trading account, which means no trading can be done from the minor side.

Whereas the guardian can transfer the hares from the minor Demat account to their own standard account

4. Freezing the Account

It is very common to freeze the account in the case of some incidents, and one of the significant incidents includes the death of the guardian.

In the case where the guardian dies, the minor Demat account gets to freeze, and after getting a new guardian, it gets started again.

5. Only long term investments

If you were looking to use the minor Demat account for the derivatives trading, it could not be possible in the minor Demat account.

This means, in the minor Demat account, the equity delivery is allowed to trade rather than any other trading type.

It is good to check both sides of the coin before purchasing anything with it. So, here were some of the advantages (pros) or disadvantages (cons) of the minor Demat account.

Note: The above-mentioned pros and cons are related to all the minor Demat accounts and not only concerned with ICICI.

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Closure of ICICI Demat Account for Minors

The closure of minor Demat account ICICI consists of two conditions, which are as follows:

• If you do not want to carry forward the trading activities at that point in time, the minor Demat account can be closed.
• The minor Demat account can be closed in case the minor crossed the age of 18 years, and now the minor account will shift to the new standard Demat account.

The minor turned major had to sign the agreement with the depository participant to complete the formalities to start a new Demat account, and the details that have been entered will get deleted.

To know the procedure of closing the minor Demat account and changing it to the major account, refer to the following steps:

1. Go to the local branch of ICICI and submit the minor demat account closure form with all the necessary credentials filled in.
2. After submitting the form, the minor Demat account will shift to the major version.

The account opening and account shifting process is simple and does not take much time.

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Conclusion

ICICI minor Demat account will be created by the guardian on behalf of the minor. Throughout this scenario, the guardian oversees the account before the minor manages the Demat account.

The opening of a minor online account is convenient and therefore does not take much effort to create an ICICI account.

Make sure you keep all the documents handy to avoid any delay and grab a better understanding of charges levied to open ICICI minor Demat account. 

Want to open a Demat Account? Refer to the form below

 

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